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Explain the meaning of tax evasion

      

Explain the meaning of tax evasion

  

Answers


Wilfred
These are illegal ways of reducing one's tax burden. It entails tax payers, deliberately misinterpreting or canceling the true state of their affair to the tax authorities to reduce tax liability and includes in particular.
a) Engaging in illegal or adventurous activities where the incomes have not been disclosed for tax purpose
b) Rendering services where the income on service rendered will be received in kind and not in cash i.e. it is not recorded or disclosed
c) Related party transactions e.g. transfer pricing.
d) Preparation of fraudulent tax returns or dishonest tax reporting like under declaring and omission of taxable income, inflating deductible expenses or failure to submit or both.
Wilfykil answered the question on February 25, 2019 at 10:19


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